S&P 500 and Stock Markets Worldwide Close Out Worst Year Since 2008

By John Mac, January 2, 2019

Stock markets worldwide, including S&P 500, Dow Jones, and Nasdaq have a worse trading year, many indexes being compared to their performance during the financial crisis in 2008.

Both the S&P 500 and Dow Jones Industrial Average significantly fell 6.2% and 5.6%, respectively for 2018. Both indexes logged in their biggest annual losses since 2008, when they dropped 38.5% and 33.8%, respectively. The Nasdaq was down 3.9% in 2018, its worst year in a decade, when it dropped 40%.

This is the first yearly drop of S&P 500 and Dow in three years, while the Nasdaq snapped a six-year great run. While the S&P 500 was up 9% during the first three quarters of 2018, marking its new milestone of ending the year in the negative area at -6.2%. It is said that the main catalyst for this fall is the sell-off that began in October.

There have been concerns of an economic slowdown, along with fears that the Fed will have to tighten monetary policy faster than expected. Investors are also careful about a trade war between the U.S. and China, and other key partners that could impact corporate earnings and the broader global economy.